Piqua Real Estate Market Phases & Foreclosures

You're undoubtedly hearing reports in the media about the increasing numbers of mortgage defaults. A frenzy of financing in the last few years allowed many buyers to secure loans that were downright inappropriate for them, and now we're experiencing the fall out. The Adjustable Rate Mortgages or ARMs were extremely low and the buyers could easily afford the payments. These ARMs have adjusted up and now the buyers find their budgets stretched beyond their limits. Any homeowner who is facing the possibility of being unable to make their mortgage payment, should contact me TODAY! If we want to have the possibility of negotiating a short sale with the lender, we need to get started immediately. If you wait until you've already missed two or three payments, the bank may foreclose before we can negotiate a short sale.

If you're planning to sell or buy a home in the near future, what effect might the number of foreclosures have on your plans? Either way, banks and lenders are beginning to formulate loans more carefully, which can affect both buyers and sellers in the Piqua Real Estate Market.

Buyers can certainly expect a tightening of credit. It will be more difficult to secure a mortgage if you have less-than-perfect credit. You'll need to anticipate slightly higher interest rates and/or a larger down payment to offset the perceived risk on the lender's part.

When buyers have more difficulty obtaining loans, sellers can feel the effects as well. That's because there may be fewer buyers out there, and they might be spending less because of the less favorable mortgage terms for which they qualify. That boils down to the possibility of fewer offers on the best homes.

However, there is always light at the end of the tunnel in every market. The Piqua Real Estate market, like the economy, always goes through phases, and always regains its footing. A home is more than a commodity - it's shelter and security, and always a solid investment.